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PhotDgr^hic 

Sciences 
Corporation 


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23  WIST  MAIN  STRUT 

WnSTIR.N.Y.  USM 

(716)  e79-4S03 


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CIHM/ICMH 

Microfiche 

Series. 


CIHM/ICIVIH 
Collection  de 
microfiches. 


Canadian  Institute  for  Histo  leal  Microreproductions  /  Institut  Canadian  de  microreproductions  historiques 


;V 


Tachnical  and  Bibliographic  Notes/Notss  techniques  et  bibtiographiques 


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□    Coloured  covers/ 
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□   Covers  damaged/ 
Couverture  endommagie 

r— 1  c. 
I I  Ci 


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Covers  restored  and/or  laminated/ 
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Le  titre  de  couverture  manque 

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Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 


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une  image  reproduite,  ou  qui  peuvent  exiger  une 
modification  dans  la  m6thode  normale  de  filmage 
sont  indiquis  ci-dessous. 


I     I   Coloured  pages/ 


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Pages  de  couleur 

Pages  damaged/ 
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r~^  Pages  discoloured,  stained  or  foxed/ 

I      j  Pages  detached/ 

I      I  Showthrough/ 

I      I  Quality  of  print  varies/ 

I      I  Includes  supplementary  material/ 


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□    Only  edition  available/ 
Seule  Edition  disponible 


Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  ref limed  to 
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Les  pages  totalement  ou  partiellemcnt 
obscurcies  par  un  feuillet  d'errata,  une  pelure, 
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obtenir  la  meilleure  image  possible. 


This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  est  filmi  au  taux  de  reduction  indiqui  ci-dessous. 


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The  copy  filmed  here  has  been  reproduced  thanks 
to  the  generosity  off: 


L'exemplaire  ffilmA  ffut  reproduit  grflce  A  la 
gtnArositi  de: 


Univsrtiti  da  Montrtei 


University  de  IMontrial 


The  images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
off  the  original  copy  and  in  iceeping  with  the 
ffiiming  contract  speciffications. 


Original  copies  in  printed  paper  covers  are  ffilmed 
beginning  with  the  ffront  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  ffilmed  beginning  on  the 
ffirst  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


The  last  recorded  fframe  on  each  microffiche 
shall  contain  the  symbol  ^»>  (meaning  "CON- 
TINUED"), or  the  symbol  y  (meaning  "END"), 
whichever  applies. 


Les  images  sulvantes  ont  M6  reproduites  avec  ie 
plus  grand  soln,  compte  tenu  de  la  condition  at 
de  la  netteti  de  l'exemplaire  fflim6,  at  en 
confformiti  avec  les  conditions  du  contrat  de 
ffiimage. 

Les  exempla^res  orlginaux  dont  la  couverture  en 
papier  est  imprim6e  sont  filmte  en  commengant 
par  Ie  premier  plat  at  en  terminant  solt  par  la 
dernlAre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration,  soit  par  ie  second 
plat,  salon  Ie  cas.  Tous  les  autres  exemplaires 
orlginaux  sont  ffiimfo  en  commengant  par  la 
premiere  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration  at  en  terminant  par 
la  dernlAre  page  qui  comporte  une  telle 
empreinte. 

Un  des  symboles  suivants  apparattra  sur  la 
dernlAre  image  de  cheque  microfiche,  selon  ie 
cas:  ie  symbols  ^^  signiffie  "A  SUIVRE",  ie 
symbols  V  signiffie  "FIN". 


Maps,  plates,  charts,  etc.,  may  be  filmed  at 
diffferent  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  ere  ffilmed 
beginning  in  the  upper  iefft  hand  corner,  lefft  to 
right  and  top  to  bottom,  as  many  fframes  as 
required.  The  ffollowing  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  Atre 
ffiimfo  A  des  taux  de  reduction  difff6rents. 
Lorsque  Ie  document  est  trop  grand  pour  dtre 
reproduit  en  un  seul  cliche,  il  est  ffllmA  d  partir 
de  Tangle  sup6rieur  gauche,  de  gauche  A  droite, 
et  de  haut  en  bas,  en  prenant  Ie  nombre 
d'images  nAcessaira.  Les  diagrammes  suivants 
illustrent  la  mithode. 


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OUR  CANADIAN  RELATIONS. 


A  LETTER 


—TO — 


Hon.  JAMES  A.  GARFIELD, 


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— IIY- 


WHARTON  BARKER. 


t^'f^mmmmm 


Philadelphia,  April  27th,  1S80. 

Hon.  James  A.  Gakkield,  House  of  Representatives, 

Washington,  D.  C. 

My  Dear  Sir:  I  have  just  learnt  that  the  subject  of  our  com- 
mercial relations  with  Canada  will  be  before  the  House  Committee 
of  Ways  and  Means,  in  an  indirect  way,  at  an  early  date.  I  take 
the  liberty  of  calling  your  attention  to  some  important  considera- 
tion i,  which  I  believe  should  have  great  weight  in  moulding  our 
national  legislation  in  that  regard. 

The  Dominion  of  Canada,  as  we  all  know,  is  a  purely  artificial 
union  of  English  Colonies,  which  possesses  no  internal  coherence. 
Its  different  members,  or  provinces,  have  with  each  other  but  slight 
affinities  of  any  sort,  and  in  commercial  interests  any  one  of  them 
would  naturally  be  more  closely  associated  with  the  adjacent  States 
of  our  own  country  than  it  is  with  any  ol  the  re.st.  Their  union 
under  a  common  government  was  effected  partly  by  political  pres- 
sure and  partly  by  fiscal  inducements  held  out  by  the  mother 
country.  One  such  was  the  aid  given  to  erect  an  unprofitable  rail- 
road, by  which  to  effect  some  channel  of  communication  between 
the  seaboard  and  the  inland  provinces,  during  that  large  part  of 
the  year  when  the  St.  Lawrence  is  impassible,  and  thus  to  obviate 
the  necessity  for  the  latter  making  their  way  to  the  sea  across  our 
own  territory.  The  policy  of  England  in  effecting  this  union  does 
not  concern  us,  except  as  it  looks  toward  the  commercial  isolation 
.of  the  Dominion  from  the  continent  to  which  it  belongs,  and  its 
commercial  dependence  upon  a  continent  with  which  it  has  only 
artificial  relations. 

The  financial  position  of  the  Dominion,  whether  under  its  re- 
cent policy  of  Free  Trade,  or  its  present  policy  of  moderate  Protec- 
tion, has  not  been  satisfactory.  She  has  $  1 70,000,000  of  debt,  the 
interest  of  which  presses  more  heavily  upon  her  resources  than 
does  that  of  our  debt  upon  those  of  the  United  States,  as  is  shown 
by  the  annual  deficits  in  her  budget  and  the  all  but  bankruptcy  of 
most  of  the  Provinces,      She  contributes  to  our  country  a  larger 


7 


quota  of  immigrants,  in  proportion  to  her  population,  than  does 
any  other  country.  She  is,  therefore,  more  than  ready  to  accede 
to  any  reasonable  arrangement  which  will  give  her  a  larger  free- 
dom of  trade  with  her  neighbors  on  our  side  of  the  line.  She  in- 
dicated this  in  her  proposal  for  a  Reciprocity  Treaty  in  1873,  and 
only  the  failure  of  that  Treaty  in  the  Senate  prevents  her  from 
making  renewed  offers.  Her  present  Tariff,  as  was  avowed  by  its 
chief  author.  Sir  Leonard  Tilly,  was  intended  to  force  us  to  make 
concessions  as  regards  commercial  relations. 

In  these  circum.stances  it  seems  to  many  of  us  a  perfectly  wise 
and  proper  thing  for  the  United  States  to  take  the  initiative  towards 
an  adjustment  of  our  nuitual  interests.  But  that  this  should  not 
be  in  the  direction  of  Reciprf)city,  but  towards  a  continental  /oil- 
verdn  or  Customs  Union,  like  that  which  Prussia  in  1828  formed 
with  the  le.sser  (ierman  states.  Such  a  Union  would  establish 
absolute  freedom  t»f  trade  between  the  two  countries.  It  would  be 
based  upon  a  common  Tariff,  enforced  on  the  seaboard  only;  and 
the  receipts  from  duties  would  be  divided  between  the  two  countries 
according  to  population,  or  on  some  other  just  basis.  My  reasons 
for  urging  this,  as  preferable  to  Reciprocity,  are  briefly  as  follows  : — 

I.  If  we  may  judge  what  Canada  means  by  Reciprocity,  from 
the  proposals  of  the  unfortunate  treaty  of  1S73,  or  from  the  terms 
of  that  of  1854.  then  that  measure  is  .so  tine-sided  and  unfair  to 
our  own  country  as  to  deserve  no  consideration  at  our  hands. 
Her  first  offer  in  1873  was  simply  to  allow  of  a  completely  free 
interchange  of  agricultural  products  between  the  two  countries. 
Under  Mr.  Secretar>'  Fish's  leading,  the\-  enlarged  this  to  include 
all  those  coarser  grades  of  manufacture,  which  were  found  to  exist 
even  in  a  British  colony  practising  Free  Trade  with  the  mother 
country,  and  in  which  the  Canadians  might  be  expected  to  hold 
their  own  against  our  comiKtition. 

The  great  object  of  such  Reciprocity  manifestly  is  to  throw 
open  to  the  Canadian  farmer,  our  Ivi.stern  markets  for  agricultural 
products  and  raw  material.  That  market  has  been  created  through 
the  development  of  manufactures  in  our  Kastern  and  Middle  States, 
beyond  the  capacity  of  their  agriculture  to  supply  food  to  the 
people  thus  employed.  Canada  has  had  no  .share  in  the  siicrifices 
made  for  the  development  of  these  manufactures.  Sh'  has  followed 
the  easier  policy  of  buying  in  the  cheapest  and  .selling  in  the  dear- 


mm 


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est  of  the  markets  she  found  open  to  her.  She  has  done  nothing 
to  create  other  and  more  advantageous  markets  on  her  own  soil 
by  the  diversification  of  her  industry.  It  is  true  that  she  has  just 
awakened  to  the  necessity  of  doing  something.  Her  perennial 
poverty  has  prompted  the  adoption  of  what  is  called  a  "  National 
Policy"  to  that  end.  But  the  one  year  of  that  Policy,  of  course,  has 
not  effected  any  great  change,  and  Canada  is  still  an  agricultural 
country,  anxious  for  access  to  the  better  markets  created  in  our 
country  for  her  corn,  her  timber,  and  other  raw  materials. 

I  think  it  is  self-evident  that  such  Reciprocity — and  we  have  no 
other  proposed — would  be  unjust,  not  so  much  to  the  manufactu- 
rers of  the  East,  as  to  the  farmers  of  our  great  West.  In  ordinary 
years  four-fifths  of  the  grain  which  crosses  the  Allegheny  water- 
shed is  consumed  by  the  people  of  the  Pastern  States,  and  only 
one-fifth  is  exported.  To  deprive  our  Mississippi  Valley  of  this 
great  market  for  provisions,  for  the  sake  of  Canada,  at  the  very  time 
when  the  settlement  of  Manitoba  promises  to  make  her  a  great 
wheat-producing  country,  and  a  leading  competitor  with  us  for  the 
supply  of  wheat  to  Europe,  would  be  neither  wise  nor  patriotic. 

2.  The  Reciprocity  plan  would  still  entail  upon  us  the  mainte- 
nance of  the  expensive  custom-house  system  which  now  lines  our 
common  frontier,  and  which  will  grow  more  costly  with  every  ex- 
pansion of  the  two  populations,  and  the  consequent  increase  of 
their  points  of  contact.  And,  while  always  costly,  that  custom- 
house line  must  always  be  inefficient.  P!very  inequality  in  the 
duties  imposed  by  either  country  upon  European  goods,  every 
duty  imposed  by  either  upon  the  products  of  the  other,  presents 
temptations  to  bold  and  lawless  spirits,  to  indulge  in  a  little  "  Free 
Trade  "  at  the  less  observed  points  of  this  long  and  purely  conven- 
tional frontier.  No  fiscal  system  can  be  enforced  by  either  country 
which  does  not  obliterate  that  line,  and  retain  the  seaboard  as  the 
only  customs-line  for  the  American  continent.  But  no  measure  of 
Reciprocity  that  has  ever  been  proposed, — neither  that  of  1854  nor 
even  that  of  1873, — has  ever  looked  to  any  such  obliteration.  A 
Customs  Union  such  as  I  have  suggested,  would  do  so,  while 
Reciprocity,  by  relaxing  the  official  attention  to  imports  from 
Canada,  might  result  in  giving  us  a  Zona  Libera  on  our  Northern 
as  well  as  our  Southern  frontier. 

3.  Reciprocity  would  leave  Canada  in  her  present  position  of 


1 


"HI 


commercial  dependence  upon  England,  and  would  encourage  her 
to  maintain  that  position  by  our  removal  of  the  disadvantages 
which  would  naturally  accompany  it.  It  would  give  her  advan- 
tages to  which  she  has  no  right,  and  would  leave  her  free  to  follow 
a  policy  hostile  to  the  interests  of  the  continent  at  large,  and 
European  rather  than  American  in  its  character.  Her  political  re- 
lations to  England  are  not  our  concern.  So  long  as  "  the  silken 
rein  "  of  the  Hritisl;  connection  pleases  her,  we  all  welcome  her  to 
wear  it.  Hut  we  surely  have  a  right  to  expect,  in  entering  upon 
closer  commercial  relations  with  her,  a  substantial  guarantee  that 
she  feels  herself  a  part  of  the  great  American  continent,  and  is  not 
ready  to  lend  herself  to  such  glittering  Imperial  schemes  as 
recently  found  favor  in  the  ministerial  councils  of  the  United  King- 
dom. If  we  may  jutige  of  her  own  attitude  towards  tlio-se  schemes, 
as  it  is  reflected  in  the  six^ech  made  by  Sir  Alexander  T.  Gait, 
when  setting  out  for  London  as  Canada's  official  representative, 
.she  was  far  from  unwilling  to  entertain  them.  This  official  repre- 
sentative of  the  Dominion  expressed  his  conviction  that  h^nglish 
Free  Trade  with  the  rest  of  the  world  having  proved  a  failure,  the 
people  of  England  were  awakening  to  the  fact  that  they  had  within 
their  Empire  a  larger  market  for  their  manufactures  than  the  rest 
of  tlie  world  can  ever  give  them  ;  and  also,  since  the  opening  of  the 
Manitoba  region,  an  abundant  food  supply  on  their  own  territories. 
And  he  pointed  to  an  Imperial  Customs  Union,  by  which  tlie  colo- 
nial markets  for  manufactures  should  be  guaranteed  to  England, 
and  the  I-lnglish  markets  for  food  and  raw  materials  to  her  own 
colonies,  by  an  Imperial  Protective  Tariff  on  both  sorts  of  goods, 
as  the  goal  toward  which  Englisii  public  opinion  was  tending.  It 
is  well  known  that  these  "great  expectations"  were  inspired  and 
fostered  b\'  Lord  Heaconsfield.  Happily,  they  have  been  laid  at 
rest  for  the  present  by  the  results  of  the  Englisli  elections  ;  and  the 
new  Liberal  Government,  while  less  forward  in  proposals  for  closer 
association  with  the  colonies,  will  be  more  ready  to  leave  Canada 
free  to  control  her  own  destiny. 

A  Customs  Union  with  the  United  States  would  be  a  final  de- 
claration of  her  Continental  sympathies,  and  her  farewell  to  Im- 
perial aspirations.  It  would  be  a  declaration  of  her  readiness  to 
unite  with  us  in  the  great  work  of  developing  the  resources  of  our 
vast  inheritance,  and  the  creation  of  free  nationalities  of  the  Ameri- 
can type  in  the  New  World. 


I 


4.  A  Customs  Union  with  Canada  gives  every  i)rospcct  of  per* 
hianence.  while  Reciprocity  can  never  do  so.  Upon  tlie  former  we 
can  all  unite.  Neither  Protectionists  nor  Free  Traders  need  have 
any  quarrels  with  m\  arrangement  which  would  make  Canada,  for 
business  purposes,  one  with  ourselves,  A  Reciprocity  Treaty  will 
always  be  a  bone  of  contention  between  the  two  parties,  and  will 
be  exposed  to  all  the  fluctuations  of  party  feeling.  That  of  1854 
was  a  partisan  mea.su re,  and  its  abolition  in  1867  was  equally  a 
jxirty  victory. 

In  view  of  the  fact  that  we  look  to  our  commercial  readjust- 
ment with  Canada  for  a  settlement  of  the  Fisheries  Question,  it  is 
of  the  first  importance  that  what  is  done  shall  be  done  to  last 
forever. 

5.  It  may  by  some  be  doubted  whether  Canada  is  either  ready 
or  competent  to  enter  into  such  an  arrangement. 

From  a  close  observation  of  the  drift  of  her  opinion,  I  am  satis- 
fied that  she  is  ready.  In  the  adoption  of  the  Tariff  of  1879,  she 
declared  to  the  world  that  she  meant  to  make  her  own  interests 
the  foremost  consideration  in  her  policy.  When  told  that  the 
policy  imperilled  the  Briti.sh  connection,  her  reply  was,  "  So  much 
the  wor.se  for  the  connection."  She  is  not  thriving,  and  cannot 
thrive  in  her  present  isolated  position,  without  access  to  the  mar- 
kets of  the  Continent,  as  was  shown  by  her  readine-ss  to  embrace 
Lord  Beaconsfield's  gorgeous  but  misty  visions.  We  are  her  last 
resort,and  it  only  remains  for  us  to  put  our  proposal  into  a  shape 
which  will  confer  lasting  benefits  upon  the  people  of  the  whole 
Continent,  in.stead  of  making  one-sided  proposals,  expensive  in  their 
results,  and  with  no  promise  of  permanence. 

As  to  her  competence,  T  may  quote  the  words  of  Sir  Alexander 
T.  Gait : 

"  By  the  Confederation  Act,  the  Imperial  Parliament  surrenders 
to  us  the  complete  control  of  our  customs,  cxci.se,  and  every  other 
mode  and  description  of  taxation.  By  that  Act  Great  Britain  vol- 
untarily deprived  herself  of  the  power  of  negotiating  for  this  coun- 
try with  foreign  countries.  .She  deprived  herself  of  the  right  to 
say  to  Canada  '  you  shall,'  or  *  you  shall  not'  impose  any  particular 
class  of  duties.  .  .  That  Act  has  placed  us  quoad  commercial  ques- 
tions, in  the  same  position  as  regards  the  Imperial  Government  as 
we  stand  in  towards  any  foreign  Government." 


In  these  C'rcumstances,  would  it  not  be  timely  to  propose  an  In* 
ternational  Commission  with  Canada,  to  negotiate  a  Treaty  for  the 
removal  of  the  exciting  restrictions  on  our  mutual  trade  ? 

I  am,  sir,  with  great  regard, 

Very  truly  yours, 

Wharton  Barker. 


PrvMOf  Edward  Stern  &  Co.,  fhlUtlflphU. 


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Tthc 


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